Lawyer: Feds In Sacramento Resurrect Perata Probe

SAN FRANCISCO (AP) - Federal prosecutors in San Franciscodropped their 4½-year-old political corruption investigation offormer California Senate leader Don Perata, but governmentattorneys in Sacramento are now pursuing the case, his attorneysaid Wednesday.

Perata attorney George L. O'Connell said he met with Sacramentoprosecutors in late December and early January but they gave him noexplanation for why they were taking over the case. O'Connell saidhe had "serious concerns" the government is moving too rapidlytoward bringing charges.

"The Eastern District is moving ahead very quickly and has notgiven an indication they're ready to pull the trigger," he said ina phone interview. "They are rushing the case ... not taking thecare this type of case would warrant."

Lawrence Brown, the acting U.S. Attorney in Sacramento, said theFBI approached his office in the fall to review the case.

"This was not done at our initiation," said Brown, who tookover the office when McGregor Scott resigned at the beginning ofthe year.

Scott said that two experienced prosecutors of politicalcorruption cases urged him to look into the case after FBI agentsinvestigating Perata approached them.

Scott said he agreed "out of an abundance of caution" toexamine the Perata matter. Scott, a Republican appointee, alsodenied claims from Perata's camp that politics played any role inpicking up the probe of Perata, a prominent Democrat.

"If that were the case, we would have indicted him before Ileft office," Scott said.

The U.S. Attorney's office in San Francisco declined comment.

In a letter to U.S. House Judiciary members on Wednesday,O'Connell said the federal government's actions are unjust and heasked the committee to investigate.

A federal grand jury has been conducting a sprawling examinationof the East Bay Democrat's business dealings, and FBI agents haveinterviewed political allies and campaign contributors who may havebenefited from his influence. The grand jury has taken testimonyand received thousands of pages of documents from governmentagencies that had dealings with Perata, who was termed out ofoffice in 2008.

The conflict-of-interest investigation also has caught up anOakland lobbyist, campaign consultants and Perata's son, Nick.

Nick Perata's attorney, Elliot Peters, said Dave Anderson, thesecond-highest ranking federal prosecutor in the San Francisco U.S.attorney's office, told him that office was declining to pursue agrand jury indictment. Meanwhile, Peters said, the Sacramentooffice said it was taking over the investigation.

"I really think the DOJ should speak with one voice," Peterssaid.

Peters sent a letter to U.S. Attorney General Eric Holdercomplaining that he and his client had agreed to waive the statuteof limitations to allow the San Francisco prosecutors time tocomplete the investigation and hear from the defense. Peterscomplained those agreements were now being unfairly exploited byprosecutors in Sacramento.

Acting U.S. Attorney Brown said the agreements apply to theentire Justice Department.

The complex investigation has been under way since 2004.

The investigation has revolved around the flow of money betweenoutside entities seeking to curry favor with decision-makers,Perata's friends and family, and the senator himself.

Among the questions is whether Perata received payments fromfirms operated by family and friends. In some cases, those firmshad received payments from his campaign committees for what hadbeen described as political consulting work.

Prosecutors also examined whether Perata helped steer politicalconsulting work to his family and friends, and whether any of thatmoney was later kicked back to Perata.

In 2005, the grand jury issued a subpoena seeking e-mails fromPerata and eight staffers dating back six years.

O'Connell said federal prosecutors repeatedly told him that theprobe had found no evidence of bribe payments.

"Over the last five years, Sen. Perata and his family havesuffered irreparable harm to their personal reputations due to aninvestigation with no clear purpose or direction," Perataspokesman Jason Kinney said. "It's time to bring this unjust follyto an end."

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